BPH Migas is Ready for the Possibility of Dissolution

Rimba Supriatna, IGAP Trisnajaya

Since the BP Migas dissolution by the Constitutional Court (MK), many are questioning whether BPH Migas—a downstream oil and gas activities supervisory agency—will also meet the same fate.

 Hukumonline was informed that Pertamina’s labor union has already requested a judicial review of Article 9(1) of Law on Oil and Gas, which stipulates the legal basis for BPH Migas establishment.

“BPH Migas is ready for the possibility of a [judicial review] in relation to its existence and performance,” commented Andi Noorsaman Sommeng, Chairman of BPH Migas, to hukumonline at a public presentation of Minister of Energy and Mineral Resources Regulation No. 1 of 2013, Tuesday (22/1).

Andi explained that BPH Migas’ existence is vital for supervision of fuel oil distribution, particularly regarding the fair distribution of subsidized fuel.

“If there is no BPH Migas, who will be in charge of fuel oil distribution supervision?” asked Andi.

He further stated that those who wish for BPH Migas’ dissolution do not really understand the strategic role and function of BPH Migas.

Hikmahanto Juwana, Law Professor at University of Indonesia, expressed his support of BPH Migas’ existence at a discussion on Management of Oil and Gas Downstream Industry in the Future, which took place a week after BP Migas’ dissolution.

He explained that BPH Migas and BP Migas have different functions. BPH Migas is an independent regulatory agency that regulates and supervises oil and gas downstream activities. Whereas, BP Migas was an agency that represented governments in oil and gas contracts.

Hikmahanto concluded that BPH Migas should not be dissolved if the Government wants to promote a business-like regulatory agency that can represent all oil and gas stakeholders’ interests.

(jt/hot)

Rimba Supriatna, IGAP Trisnajaya

Since the BP Migas dissolution by the Constitutional Court (MK), many are questioning whether BPH Migas—a downstream oil and gas activities supervisory agency—will also meet the same fate.

 Hukumonline was informed that Pertamina’s labor union has already requested a judicial review of Article 9(1) of Law on Oil and Gas, which stipulates the legal basis for BPH Migas establishment.

“BPH Migas is ready for the possibility of a [judicial review] in relation to its existence and performance,” commented Andi Noorsaman Sommeng, Chairman of BPH Migas, to hukumonline at a public presentation of Minister of Energy and Mineral Resources Regulation No. 1 of 2013, Tuesday (22/1).

Andi explained that BPH Migas’ existence is vital for supervision of fuel oil distribution, particularly regarding the fair distribution of subsidized fuel.

“If there is no BPH Migas, who will be in charge of fuel oil distribution supervision?” asked Andi.

He further stated that those who wish for BPH Migas’ dissolution do not really understand the strategic role and function of BPH Migas.

Hikmahanto Juwana, Law Professor at University of Indonesia, expressed his support of BPH Migas’ existence at a discussion on Management of Oil and Gas Downstream Industry in the Future, which took place a week after BP Migas’ dissolution.

He explained that BPH Migas and BP Migas have different functions. BPH Migas is an independent regulatory agency that regulates and supervises oil and gas downstream activities. Whereas, BP Migas was an agency that represented governments in oil and gas contracts.

Hikmahanto concluded that BPH Migas should not be dissolved if the Government wants to promote a business-like regulatory agency that can represent all oil and gas stakeholders’ interests.

(jt/hot)

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